The amount of a dividend is normally calculated as
A) the number of shares outstanding multiplied by a percentage dividend rate.
B) a percentage of the balance in Common Stock.
C) the number of shares outstanding multiplied by a dollar amount per share.
D) the balance of Retained Earnings.

Question

Quizplus · Accepted Answer

Dividends are typically calculated based on the number of shares a shareholder owns, multiplied by a specific dollar amount per share. This method allows for a straightforward calculation of the total dividend payment an individual shareholder will receive.

The Amount of a Dividend Is Normally Calculated as